Insider Spends AU$82k Buying More Shares In OFX Group

Even if it's not a huge purchase, we think it was good to see that Patricia Cross, the Independent Non-Executive Chair of OFX Group Limited (ASX:OFX) recently shelled out AU$82k to buy stock, at AU$0.82 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 30%.

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OFX Group Insider Transactions Over The Last Year

The CEO, MD & Executive Director John Malcolm made the biggest insider purchase in the last 12 months. That single transaction was for AU$248k worth of shares at a price of AU$1.30 each. That means that an insider was happy to buy shares at above the current price of AU$0.83. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

OFX Group insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$1.06 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for OFX Group

OFX Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does OFX Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that OFX Group insiders own 6.5% of the company, worth about AU$13m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At OFX Group Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest OFX Group insiders are well aligned, and that they may think the share price is too low. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for OFX Group.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.